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The AZEK Company (AZEK) Ascends While Market Falls: Some Facts to Note

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The AZEK Company (AZEK - Free Report) closed the latest trading day at $50.17, indicating a +0.82% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily loss of 0.04%. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq appreciated by 0.03%.

Coming into today, shares of the company had gained 1.76% in the past month. In that same time, the Construction sector gained 4.37%, while the S&P 500 gained 2.57%.

The upcoming earnings release of The AZEK Company will be of great interest to investors. In that report, analysts expect The AZEK Company to post earnings of $0.37 per share. This would mark year-over-year growth of 105.56%. Meanwhile, our latest consensus estimate is calling for revenue of $412.01 million, up 9.09% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.15 per share and revenue of $1.42 billion, which would represent changes of +55.41% and +3.31%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for The AZEK Company. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, The AZEK Company is carrying a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that The AZEK Company has a Forward P/E ratio of 43.42 right now. This indicates a premium in contrast to its industry's Forward P/E of 31.15.

It's also important to note that AZEK currently trades at a PEG ratio of 1.44. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Building Products - Air Conditioner and Heating was holding an average PEG ratio of 2.36 at yesterday's closing price.

The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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